Thursday, September 07, 2017

House price growth sees slight recovery

Halifax House Price Index for August shows in the last three months (June-August) prices were up 0.1% on the previous three months (March-May).

This corresponds to an annual growth rate of 2.6%, down from a peak rate of 10.0% registered in March 2016 ( largely fuelled by the landlord buying stampede prior to the introduction of the second home stamp duty surcharge).

Russell Galley from Halifax reflects on the data:

“The annual rate of growth increased from 2.1% in July to 2.6% in August with the average house price now £222,293, which is just above the previous high of December 2016 (£222,190).

Recent figures for mortgage approvals suggest some buoyancy may be returning, possibly on the back of strong recent employment growth, with the unemployment rate falling to a 42 year low. However, wage growth is still lagging increases in consumer prices, which is likely to add pressure on household finances and increase affordability challenges for some buyers.

House prices should continue to be supported by low mortgage rates and a continuing shortage of properties for sale over the coming months.”